In a recent market report, ITTO said that Chinese importers fear failing to meet the new regulations that govern the sourcing of timber products.

The US’s Lacey Act and the EU’s FLEGT ruling put the burden of responsibility on importing companies, holding them to the environmental laws of producing countries.

Companies found to be sourcing illegally logged timber could be subject to fines or worse.

A company accused of using illicit rosewood from Madagascar, was the first company to be charged and investigated under the Lacey Act.

The legislation was amended in 2008 to include “anyone who imported, exported, transported, sold, received, acquired or purchased the wood products made from that illegal timber, who knew or should have known that the wood was illegal.” The firm’s case is pending.

According to ITTO, CTWPCA believes traders need “guidance and support” on the new international requirements.

The body would also set up a “responsible procurement system” for timber imports, seek to address corruption in the timber import and trade sector, and aim to help Chinese timber traders meet international standards.

These compel companies to abide by local environmental laws and take measures to reduce pollution. However, some observers suggest that there is no indication that these mandatory rules are being enforced.